Receivership Abatement Program

106 Pages·2012·4.78 MB·English

Who, What, When, Where, Why, and How
Issues and Problems
Practical Suggestions – Making it Work
1. What is a Receivership
2. Who is a Receiver
3. Why have a Receiver appointed?
4. When should a Receiver be appointed?
5. Where does Receivership come from?
6. How is a Receiver appointed?
In law, receivership is the situation in which an institution or enterprise

is being held by a receiver, a person "placed in the custodial
responsibility for the property of others, including tangible and intangible
assets and rights."[1] The receivership remedy is an equitable remedy that
emerged in the English Chancery courts, where receivers were appointed
to protect real property.[2] Receiverships are also a remedy of last resort in
litigation involving the conduct of executive agencies that fail to comply
with constitutional or statutory obligations to populations that rely on
those agencies for their basic human rights.[2] Various types of receiver
appointments exist:[1]
a receiver appointed by a (government) regulator pursuant to a statute;
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a privately appointed receiver; and

a court-appointed receiver.[1]

The receiver's powers "flow from the document(s) underlying his

appointment – a statute, financing agreement, or court order.

Source - Wikkipedia
Receivership as being discussed in this class is a

receivership is granted under the auspices of California
State Health and Safety Code Section 17980.7 (c), which
states, in part:

(c) The enforcement agency, tenant, or tenant association or
organization may seek and the court may order, the appointment
of a receiver for the substandard building pursuant to this
subdivision. In its petition to the court, the enforcement agency,
tenant, or tenant association or organization shall include proof
that notice of the petition was served not less than three days prior
to filing the petition, pursuant to Article 3 (commencing with
Section 415.10) of Chapter 4 of Title 5 of Part 2 of the Code of
Civil Procedure, to all persons with a recorded interest in the real
property upon which the substandard building exists.
In short, receivership as defined by this section
of the Health and Safety Code is the court
(government) or an agent of the court taking
control of real property, usually residential
property, for the ultimate purpose of abating
substandard conditions, preserving the
property, and protecting the public health and
safety.
As someone appointed by the court a receiver
is, first and foremost
AN AGENT OF THE COURT
A receiver should also be someone with a
demonstrated ability to take impartial, positive
and affirmative control of an out-of-control
company, asset, or property
Health and Safety Code Section 17980.7 (c)(2)
has the following requirement for a receiver:
The court shall not appoint any person as a receiver
unless the person has demonstrated to the court his
or her capacity and expertise to develop and
supervise a viable financial and construction plan
for the satisfactory rehabilitation of the building.
Finally, 17980.7 (c)(2) also states
A court may appoint as a receiver a nonprofit
organization or community development
corporation. In addition to the duties and powers
that may be granted pursuant to this section, the
nonprofit organization or community development
corporation may also apply for grants to assist in
the rehabilitation of the building.
First and best answer – money. Fixing substantive
1.
board and nail violations takes money. Lots of
money. More often than not the underlying
financials of substandard property, driven by
market forces PRECLUDES AND PREVENTS this
investment. To date, by being given priority over
all interested parties of record, receivership breaks
this financial chain binding the property to
remaining in substandard condition.
Because the sovereign power tasked with
2.
preserving the local housing stock – a municipality
or a county – is committed to preserving those
portions of its housing stock that are worth
preserving.
Experienced Code Enforcement personnel know
that substandard, abandoned, and dangerous
buildings present very real threats to the public
health and safety – both to members of the public
that live in those buildings, those that live near
those building, and to those that go into those
buildings, frequently ‘first responders’ – police and
fire personnel. The following section of 17980.7
spells out the real ‘why’ of receivership – it allows
an agent of the court to take total positive control
of out of control or chaotic buildings and
properties.